In October 2021, bitcoin hit a new high as it surged up to $66,974. It dropped down to hover around the $60,000 mark soon after but this has shown there is still potential for crypto to reach new heights.
Ethereum and the crypto market all looked healthy around the time that bitcoin was threatening to reach the $70 grand mark. It is the volatility though that puts many people off from investing in crypto. This is a shame because although the days of picking up bitcoin for $1 have long gone, the boat has far from completely sailed.
Another concern that makes potential investors nervy is choosing the right exchange, and understanding how to keep their crypto safe.
Many websites offer advice on cryptocurrencies, and Cryptoholics is one of them. But, are they to be trusted, and can they help you to understand the ins and outs of crypto exchanges and wallets?
Is the Cryptoholics website trustworthy?
It would appear that there is little risk in using the website as it isn’t actually an exchange. Cryptoholics was started by enthusiasts who wanted to share their knowledge and features reviews and other advice on trading.
The website is largely based around giving pointers to existing licensed and trusted trading platforms such as eToro, and also in answering commonly asked questions.
They also list known crypto scams and cases so that their audience can avoid these problems. These are areas that newbies to crypto should be concerned about so it is welcome to see them being reported.
Lastly, the website has a physical address in London which always helps to breed trust, and there is a phone number too.
Are there many crypto scams and robberies?
Blockchain was supposed to be unbreakable and therefore an incredibly safe way for encoding data and avoiding hackers. Unfortunately, there are many vulnerabilities and these have been exploited.
While the passwords linked to bitcoin wallets are near uncrackable, robberies have taken place. Hackers have managed on more than one occasion to gain access to crypto exchanges.
Earlier in 2021 one of the biggest crypto robberies took place at Poly Network as hackers stole around $600 million in various digital tokens. This is one reason why websites such as Cryptoholics are useful for recommending trusted exchanges.
How to choose a crypto exchange
Before you start buying cryptocurrency of any type, bitcoin, ether, doge, or whatever, you will need to use an exchange.
It is also necessary for a wallet to be created to store your crypto in, but more on that later. If you want to know how to choose the best crypto exchange for you then you should start with reviews.
Search for sites that show reviews and comparisons between different exchanges. Look at their security procedures, how long they have been established, and if they are regulated or licensed in any way.
Using trustworthy sources of information on the internet will help you to make an informed decision. Don’t rely on the word of a friend as you don’t know how much time they put into choosing their exchange. Ask the experts and read their advice instead.
How to keep yourself safe while trading online
Once you have decided to get involved with crypto you will also want to know how to keep your bitcoin safe and secure, or your ethereum, or whatever you choose to invest in.
Follow the usual rules for passwords such as keeping them secret and never sharing them. For bitcoin, this means the backup passphrase and the recovery key. Use a password manager to constantly update your access codes, and use a VPN too.
VPNs add another level of privacy to your online activity. The data involved with blockchains are highly encrypted but hackers could still be listening in on your transactions with a crypto exchange. VPNs hide your location and identity and give you extra anonymity online.
How you store your crypto will also affect your level of security.
What are hot and cold wallets?
You may have heard that you will need a wallet to store your cryptocurrency in. These come in two forms and neither of them involves leather or has spaces for credit cards.
When wallets are referred to for cryptocurrency they are simply ways to store the digital code that relates to the currencies involved. Hot wallets are linked to the internet and are, therefore ‘live’. Cold wallets are not connected to anything and are typically items such as flash drives and external HDDs.
Hot wallets are more at risk from hackers as they are effectively online, although protected by passwords. Cold wallets cannot be touched by hackers and can be safely stored in a desk.
However, remembering the passkey to gain access to cold wallets is vital, and many a person has lost all the crypto stored on a cold wallet by forgetting theirs.
It would seem that websites such as Cryptoholics and other resource sites offer some useful information for investors. The golden rule when visiting any new website is to keep your sensitive data safe.
Never divulge your financial or personal details to a website unless you know them to be safe. This way you can enjoy the information given out without any risk of harm. If you get very lucky you might even make some cash when bitcoin hits the magic 100K mark...maybe.